Calculators
Segment Profitability Calculator
Calculate profit by product line, client or revenue account after direct costs and an allocated share of overheads.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Deciding which services to grow or drop
- Client profitability reviews
- Pricing reviews
- Management reporting
About this tool
What the Segment Profitability Calculator does
Total profit can hide segments that lose money. This calculator takes revenue and direct costs for each product line, client or revenue account in your chart of accounts, allocates shared overheads by revenue share, and shows the contribution and net profit of each.
It also works as a chart of accounts profitability calculator.
Formula
- Contribution = revenue − direct costs
- Allocated overhead = shared overheads × segment revenue ÷ total revenue
- Net profit = contribution − allocated overhead
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Segments | 4 entries |
| Shared overheads to allocate | $95,000 |
| Result | Value |
|---|---|
| Total net profit | $130,000 |
| Overall net margin | 25.5% |
| Most profitable segment | SEO retainers |
| Segments losing money | 0 |
How to read the result
A segment with positive contribution but negative net profit still helps cover overheads; dropping it would leave those overheads on the others.
Revenue is a simple allocation base. If one segment uses far more staff time, allocate overheads by hours instead for a fairer picture.
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If you would rather someone did this properly for you, we offer Web Design Services and Website Development, SEO Services: Search Engine Optimization, AI Automation Agency.
Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Profit measured separately for each product line, client group or region after its costs.
By the driver that best reflects use, such as revenue, staff hours or floor space.
Not automatically. If its contribution is positive, it is still covering part of the overheads.
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